(Reuters). Despite Americans being worried about high inflation and their credit cards, U.S. consumers have increased spending on debit cards so far in 2022 by 15%.

According to the bank’s research, households with lower incomes – which are often considered to be the most susceptible to an inflation-induced shock — actually spend the least relative to the amount they have saved,

Bank of America Institute researchers confirmed the assertion that some of this group’s spending could reflect rising inflation. The March consumer price index saw an 8.5% rise year over year, marking the most significant increase in 40 years. This group also spends more money on food, fuel, and utilities than the rest, contributing heavily to the CPI growth.

Their words were: “But this group still has card spending levels that are way higher than pre-pandemic.” The Bank of America’s latest debit and credit card spending per household report shows card spending rising 33.3% for the lowest $50k group over the past three years, they said.

The card spending in April 2008 was 15% more than the previous year.

The widely-respected Consumer Sentiment Index from the University of Michigan has shown that Americans are most concerned about the economy over the past decade. This is often an indicator that consumers may be trying to rein in their spending.

“But people don’t always actually do what they say they are doing – sentiment is not the same as action,” the bank wrote.

“The hard facts do not back the gloom.”

The Census Bureau data due to come out on Thursday is actually expected to show U.S. Retail Sales rose 0.6% from March, according Reuters poll. This represents an acceleration over February’s 0.3% growth.

The average monthly growth rate in retail sales was 1.4% in February. This is more than three times as high as the rate in the year prior to the pandemic.

Researchers at Bank of America attributed America’s job market to its continued strength. At 5.6% per year, the unemployment rate stands at 3.6%. This is roughly the same rate as before pandemic. There are almost two jobs available for each unemployed person. Hourly wage increases are at their highest rate in many years.

The workers said that, “(B]eingth this already optimistic picture, there is still a better story at lower ends of the wage distribution.” Year-over-year, wages in the lowest paying industries like hospitality and leisure have risen 11.8%.

Cash, which is available to low-income households in particular, continues to support spending. Due to higher wages, and the residual funds of repeated federal stimulus rounds during the pandemic, bank accounts remain well-stocked.

The bank has at least $1500 more for households with incomes less than $50,000 per year, which is 5% of their household spending.

Researchers wrote that it was difficult to find a balance between high spending on credit cards and bank accounts, while also considering the possibility of lower-income households being overwhelmed by high prices.